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The Reign In Spain Is Over

Tyler Durden's picture


From Mark Grant, author of Out of the Box


Spain Capitulates

Spain has now officially asked the European Union for aid for its banks. The markets seem to be responding as if the bank issue is isolated. It is not isolated. We are following the same schematic as we did with Ireland; first it was the banks and then it was the country and then the “Men in Black” showed up to take over. Spain says it is a 50 billion Euro problem and the reality is probably more like a 400 billion Euro problem. There is all kinds of cross lending between the banks in Spain and while Spain’s largest two banks have tried everything they could to isolate themselves; I predict there will be no escape for anyone. Now that Spain has asked for a bailout of their banks the European auditors will show up and I would bet large money that the values of many loans and the value of Real Estate and the securitizations tied to it will be found to have been vastly overstated. Then it will be the regional governments and their debts and the house of cards will implode. The Spanish Finance Minister kicked off the first domino this morning and we can all just stand by now and watch the rest fall.

Bear in mind that the current Stabilization Fund in Europe, not the one that is not even yet in existence, has nowhere near the capital to shore up the Spanish banks much less the country. The G-7 is having an emergency meeting about Spain this morning and while there is a lull presently; it will not last. The periphery nations, led by Spain, are pushing on Germany and the funding nations to step-in but the cost will be very high and a huge loss of sovereignty. I doubt if many in Europe understand the price that will be extracted which will be the EU taking over Spain’s financial system, taxes and social services so that Brussels/Berlin will control the country. Spain arrived at the precipice, as I have predicted many times and this morning; they have fallen over the edge.

So long and thanks for all the sardines!

Sancho is no longer fighting with windmills this morning. Notions of some charming book or a small foray into the countryside have been replaced by a much more serious confrontation where Germany will demand vengeance for the irresponsible behavior of Spain. Make no mistake here, don’t get fooled again; Spain is going to come under the heel the jackboot and applying what motives you may to Germany will make little difference in the end. The current government of Spain will no longer be in control. First it will be the banks and then the regional debt and, recognizing the inevitable yet or not; the end-game began this morning. Spain is done!

I'll be seeing you
In all the old familiar places
That this heart of mine embraces
All day through


In that small cafe
The park across the way
The children's carousel
The chestnut tree
The wishing well 


                           -I’ll be Seeing You


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Tue, 06/05/2012 - 08:06 | 2495260 maxmad
maxmad's picture

El Collapso, Senioritas!

Tue, 06/05/2012 - 08:08 | 2495261 maxmad
maxmad's picture

Ben Dover Speedy!  Gonzalez




Tue, 06/05/2012 - 08:13 | 2495267 GetZeeGold
GetZeeGold's picture



Grab a Green Chute......they're going fast.


Going green put them in the red.....anyone else got any more great fukin ideas?


Tue, 06/05/2012 - 08:25 | 2495306 Popo
Popo's picture

I seem to remember a Spanish organization called ETA that had some interesting ideas.

Tue, 06/05/2012 - 08:44 | 2495369 clones2
clones2's picture

I thought Spain was "fine"... :-)

Tue, 06/05/2012 - 08:48 | 2495385 Harlequin001
Harlequin001's picture

It was, until about twenty past three...

Tue, 06/05/2012 - 10:00 | 2495711 THX 1178
THX 1178's picture

March 20th?

Tue, 06/05/2012 - 11:23 | 2496002 DaveyJones
DaveyJones's picture

The champagne in Spain lies mainly down the drain

Tue, 06/05/2012 - 08:47 | 2495371 Harlequin001
Harlequin001's picture

Apart from the Armada, which sank, did anything of note other than Don Quixote come out of Spain?

apart from a shit load of worthless paper that is... and yellow fever...

and spanish onions...

Tue, 06/05/2012 - 09:04 | 2495429 Lucius Corneliu...
Lucius Cornelius Sulla's picture

They have some awesome accoustic guiter players including Paco de Lucena.  Salvador Dali and Pablo Picasso made their mark...

However, never hire a Spaniard to balance your checkbook!

Tue, 06/05/2012 - 11:26 | 2496011 12ToothAssassin
12ToothAssassin's picture

Guernica bitchez

Tue, 06/05/2012 - 09:03 | 2495454 sdmjake
sdmjake's picture

Spanish Boots of Spanish Leather.

and some pretty tasty red wine...

Tue, 06/05/2012 - 09:09 | 2495476 Optimusprime
Optimusprime's picture

Zurburan, Velazquez, Utrillo, El Greco, Lope de Vega, the Tercios, the Reconquista, etc, etc, etc.  What an idiotic question.

Tue, 06/05/2012 - 09:34 | 2495594 Treason Season
Treason Season's picture

Point of order.


Tue, 06/05/2012 - 12:26 | 2496223 Harlequin001
Harlequin001's picture

so, going back over nearly 1500 years you managed 7 things, one of which was French. Cool...

Tue, 06/05/2012 - 13:57 | 2496544 mr_T
mr_T's picture

Wow.. some ZH readers with culture..

Tue, 06/05/2012 - 09:46 | 2495642 GMadScientist
GMadScientist's picture


Tue, 06/05/2012 - 11:12 | 2495967 Overfed
Overfed's picture


Tue, 06/05/2012 - 11:27 | 2496016 Alpacanio
Alpacanio's picture

Spanish flu.

Tue, 06/05/2012 - 12:15 | 2496179 dirtbagger
dirtbagger's picture

The Inquistion

Tue, 06/05/2012 - 12:49 | 2496294 Satan
Satan's picture

Spanish Fly.

Tue, 06/05/2012 - 11:29 | 2496024 12ToothAssassin
12ToothAssassin's picture

Alberto Contador, Miguel Indurain, Samuel Sanchez

Tue, 06/05/2012 - 11:37 | 2496055 DaveyJones
DaveyJones's picture

lots and lots of castles, art, exploration, and (as mentioned) very good guitar players

Tue, 06/05/2012 - 12:16 | 2496181 Harlequin001
Harlequin001's picture

so nothing really worth mentioning then?

Tue, 06/05/2012 - 16:25 | 2497274 DaveyJones
DaveyJones's picture

good point - really good guitarists and artists never make any money 

or get any girls

Tue, 06/05/2012 - 09:13 | 2495491 Calmyourself
Calmyourself's picture

Remember an org called the IRA?  Fat lot of good it did in Ireland..  No, Spain will take its medicine as it has been conditioned to do over the last fifty years..  We cannot endager the nanny state by resisting our betters..

Tue, 06/05/2012 - 11:53 | 2496116 antaresteleko
antaresteleko's picture

Hey Popo, let me put things straight:

ETA is a TERRORIST organization that has killed more than a thousand people who lived in a democracy. The methods they have used so far range from shooting in the head of politicians in front of their wife and children, to bombing shopping centers and airport terminals.


Please be careful when you talk. These people have other means in Spain to defend their political ideas than killing.

Tue, 06/05/2012 - 08:20 | 2495284 piliage
piliage's picture

This just in from PM Rajoy, "Bailouts! We ain't got no bailouts. We don't need NO bailouts. I don't have to show you any stinking bailouts!"

Tue, 06/05/2012 - 08:17 | 2495285 UBIGDummy
UBIGDummy's picture

lets show them the compassion and the lack of respect for international law, that they showed the salvage company who's silver they stole via USSA courts.  


Sell that silver.  US Taxpayers don't need to fund theives!

Tue, 06/05/2012 - 08:08 | 2495264 insanelysane
insanelysane's picture

No problem here,  No problem here.  No problem here.  No problem here.  No problem here.  Hey we have huge problems here, why isn't anyone helping us, NOW!


Tue, 06/05/2012 - 08:57 | 2495423 smb12321
smb12321's picture

Why all the pessimism?  After all is said and done you'll be able to travel cheaply to a beautfiul land, enjoy a fabulous paella with a nice Rioja and take a siesta to boot!  The PIIGS should return to pre-EU status as vacation spots with strong extended families and wonderful local food.   Leave the heavy hitting to the Germans, Finns, Dutch and Swedes.

Tue, 06/05/2012 - 12:56 | 2496315 Paracelsus
Paracelsus's picture

Er,this Paella tastes funny,something extra in the ingredients?

Tue, 06/05/2012 - 08:09 | 2495266 Peter Pan
Peter Pan's picture

We all need to ask ourselves just one question. If everyone is turning to Germany to save the Euro, what will the outcome be if Germany itself starts to post negative growth, growing deficits and growing national debt?

Exactly, there is no basis for truly saving the Euro.


Tue, 06/05/2012 - 08:17 | 2495286 ATM
ATM's picture

Never fear. The Euros will then run to Helicoptor Ben. When we Americans reach the cliff, no one will have anywhere to turn. So remain calm. All is well!

Tue, 06/05/2012 - 08:27 | 2495311 piliage
piliage's picture

Oops. Too Late. German PMI just tanked. I see Big Ben's Giant Control P on the horizon.

But Krugman says we need to spend several trillion more so I'm sure it is all OK.

Tue, 06/05/2012 - 08:47 | 2495377 kridkrid
kridkrid's picture

Krugman is half right... austerity won't work.  It's the part where he believes that something will work that he misses the mark. 

Tue, 06/05/2012 - 08:31 | 2495326 brooklynlou
brooklynlou's picture

Asset stripped by the Germans before they bail on the Euro or asset stripped by the Americans before they go on a printing spree.

Scylla, meet Carybdis; Carybdis, Scylla. Pick ...

Tue, 06/05/2012 - 09:16 | 2495514 Calmyourself
Calmyourself's picture

Wrong, we will run to our ATM, China and they in turn will demand Hawaii and Alaska...

Tue, 06/05/2012 - 09:42 | 2495627 Treason Season
Treason Season's picture

Nightmare scenario: President Hitlery says, "Hey, the Chinese bought us fair and square so it's my duty to enforce American servitude for our new masters."

Tue, 06/05/2012 - 08:51 | 2495396 smb12321
smb12321's picture

Germany's future?  Bleak at best.  She leads the EU in population loss (no kids) despite 200,000 Arab immigrants yearly.  Her society is in inexorable transformation. She made changes in the 90's that gave her an extra decade but in the end, someone has to pay for all those services and pensions and in her case, it's the State of course. She won't have that kind of money with dwinding taxpayers.

Tue, 06/05/2012 - 10:07 | 2495736 piliage
piliage's picture

Is this a typo? Did you mean Germany or California?


Tue, 06/05/2012 - 08:11 | 2495268 GeneMarchbanks
GeneMarchbanks's picture

I see you've added pichas to your arsenal of song lyrics, cartoon quotations and overall terribly generalized Hollywood analogies. Can't say I'm surprised... your fans will gladly embrace this new tact once they are done coloring and find their way over to your daily nonsense of clumsy non/dis-info.

Tue, 06/05/2012 - 08:16 | 2495283 maxmad
maxmad's picture

Maybe you should switch back to Steve Liesman and your other B-tches at CNBC! 

Tue, 06/05/2012 - 08:19 | 2495288 GetZeeGold
GetZeeGold's picture



Steve...check your mail. Your Nobel Prize should arrive today!


Tue, 06/05/2012 - 08:39 | 2495353 maxmad
maxmad's picture

Gene, Looks like your boy Liesman is getting his A$$ handed to him right now!  LOL 

Tue, 06/05/2012 - 08:45 | 2495372 JOYFUL
JOYFUL's picture

I'm big on cartoon quotations, they tend to be more reflective of "reality"anymore than the sad pastiche that passes for it's replacement...but I honestly don't know what yu done did or said to deserve all those down arrows Gene...

I'd give yu one up arrow, but what's the's tru, Mr Grant is a wacked out klown of the kind that all too often finds it's way to the top banner of ZH,[Sancho did not 'fight windmills-he was actually the voice of 'reason' to El Don's visionary madness!" -anyone who can confuse the two main  characters of the first and greatest major epic novel of the European world is truly an ass!]...

but if he actually quotes cartoon characters I'm gonna have to go back and review his ouevre before writing him off!

Tue, 06/05/2012 - 09:06 | 2495465 hnaparst
hnaparst's picture

Thank you.  At least I'm not the only one screaming here about the butchering of literature.  But let's face it, no one reads anymore. The amazing thing is that Grant quotes literature like an intellectual but hasn't even read the books!

Tue, 06/05/2012 - 09:20 | 2495533 GeneMarchbanks
GeneMarchbanks's picture

I believe the moment he used an Eeyore quotation I went from suspicious to ... well kind of astounded.

 But let's face it, no one reads anymore. The amazing thing is that Grant quotes literature like an intellectual but hasn't even read the books!

There is no reason to read when you can have well paid men in suits tell you exactly what you want to hear.

Tue, 06/05/2012 - 12:21 | 2496200 Don Keot
Don Keot's picture

Sancho "I sometimes think that all you tell me of knighthood, kingdoms, empires and islands is all windy blather and lies".  In my day this was the literary parable we had to write our paper on.  I have never forgot it.  Quixote saw life as he wanted it to be, rather than how it really was.  Not much has changed.  There seem to be millions of Don Quixote's out there.  Not too many on ZH, life is seen how it is rather than how it should be.

Tue, 06/05/2012 - 08:10 | 2495269 LULZBank
LULZBank's picture

Spain says it is a 50 billion Euro problem.

Only 50 billion Euros?

Bruno Iksil would'nt even get out of bed for that kind of money.

Tue, 06/05/2012 - 08:22 | 2495296 IMA5U
IMA5U's picture

oh so true

CDS... put down 20 cents to get $1 of risk

And its typically 5 years and replicates the cash


Why are these products legal?????  Besides it being a hidden casino and profit center for the banks until it goes Fail Whale???


Tue, 06/05/2012 - 08:41 | 2495360 LULZBank
LULZBank's picture

Why are these products legal?????

WTF dude??!! Whats legal and morals got to do with it?!

Next you'll be calling Corzine a criminal. So predictable you lot.

Tue, 06/05/2012 - 09:09 | 2495426 kridkrid
kridkrid's picture

The products aren't the problem.  Credit/debt money is the problem. 

Say you were watching a traditional Ponzi scheme start up... you're on the outside looking in.  You decide to make bets on when the ponzi scheme is going to collapse (who is going to get stuck holding the bag).  In the process of doing this, attention is drawn to the ponzi scheme.  It may even hasten the collapse because some may have been oblivious to the scheme all along.  My question for you... did those bets have anything to do with inevitability of the collapse?

The people running the Ponzi scheme may have been pissed about the attention you drew... but the underlying problem is the underlying problem.

Tue, 06/05/2012 - 08:12 | 2495273 trebuchet
trebuchet's picture

Is that man ON the donkey or BEHIND it????


Couple this news with:  

UK going AA to AA-;

Finland saying "no",

Germany econdata diving; and

Berkel fiddling on banking union rules while Rome is about to burn courtesy of the four hedgemen of the apocalypse and we are in for one hell of a GAME OF DOMINOES



Tue, 06/05/2012 - 08:16 | 2495281 LULZBank
LULZBank's picture

Stop all that doom mongering, nothing of that sort will be allowed to happen.

We will be printing all the way down the cliff, with plenty at the bottom to cushion our fall.

We will be introducing new bank notes, which will say at the bottom, in small print "Please save the trees" - As running out of paper will be the real collapse!

Tue, 06/05/2012 - 10:51 | 2495890 the tower
the tower's picture

The doom mongering is helping the man on the street to cope, and with that it helps us to reset the system.


Things will be a lot better for all of us, yes, also the men at the top, but who cares.

Tue, 06/05/2012 - 08:12 | 2495274 sockratte
sockratte's picture

rather 'Men in Gold'...

Tue, 06/05/2012 - 08:13 | 2495275 Seasmoke
Seasmoke's picture

Get ready to buy some Eurobonds.

Tue, 06/05/2012 - 08:24 | 2495304 GetZeeGold
GetZeeGold's picture long as they're free.


Tue, 06/05/2012 - 08:14 | 2495278 janus
janus's picture

it ain't exactly spain, but it'll play, mr grant...


pancho met his match you know/

in the deserts down in mexico...

lefty he can't sing the blues/

all night long like he used to..

all the federaleses/

they could have had them any day

Tue, 06/05/2012 - 08:20 | 2495290 AmenRa
AmenRa's picture

"So long and thanks for all the sardines!"


A play on the song from Hitchhiker's Guide?

Hasta luego y gracias por todos los peces.

Tue, 06/05/2012 - 08:21 | 2495291 LongSoupLine
LongSoupLine's picture

Bullish....futures went green.

Another day of algo horseshit.

Tue, 06/05/2012 - 08:23 | 2495298 LULZBank
LULZBank's picture

Bullish....futures went green.

Another day of algo horseshit.

First you complain that there is no recovery, AND THEN you complain about the green shoots of recovery!

Unbelievable. There is no pleasing you lot!

Tue, 06/05/2012 - 08:43 | 2495366 LongSoupLine
LongSoupLine's picture

Congrats on one of the stupidest troll comments I've read. Holy shit...robo could do a better job.

Tue, 06/05/2012 - 08:51 | 2495397 LULZBank
LULZBank's picture

My /Sarc Fu is better than everybody else's.

Tue, 06/05/2012 - 09:01 | 2495446 LongSoupLine
LongSoupLine's picture

Damn it...I should have caught that. That does it, I'm switching coffee brands

Tue, 06/05/2012 - 08:33 | 2495333 kito
kito's picture

of course this is bullish, spain will not go home with an empty alms basket......there will at least be one or two bailouts lined up over the next 6 months....shirley the greek playbook is on the table...............

Tue, 06/05/2012 - 08:22 | 2495295 LeBalance
LeBalance's picture

Although the literary allusion with Sancho is amusing in the Spanish context, he was not the character contesting against reality.  That was the Don.  Sancho was just a servant helping his master realise his dreams, insane as they were.

Tue, 06/05/2012 - 08:29 | 2495317 janus
janus's picture

i noticed that too, lebalance.

and, i must concede, it is a bit of an issue

Tue, 06/05/2012 - 08:23 | 2495297 grunk
grunk's picture


To dream the impossible dream.

Tue, 06/05/2012 - 08:23 | 2495299 jjsilver
jjsilver's picture

Illuminatti motto: Promise everything, Explain nothing, Deny everything

Tue, 06/05/2012 - 08:26 | 2495307 LULZBank
LULZBank's picture

Illuminatti motto: Promise everything, Explain nothing, Deny everything

Problem is; not them saying it but you even paying attention to it.

Tue, 06/05/2012 - 08:35 | 2495340 WAMO556
WAMO556's picture

I thought that was the CIA motto!!

Tue, 06/05/2012 - 08:44 | 2495370 t_kAyk
t_kAyk's picture

Sounds like something a pimp would say

Tue, 06/05/2012 - 08:25 | 2495305 Mr. Lucky
Mr. Lucky's picture

Not to worry.  The German tax collectors are on their way.

Tue, 06/05/2012 - 08:26 | 2495308 janus
janus's picture


sometimes the progress of history crosses back against a work of art; and in this particular instance janus has observed it!

here's my dedication to the G-7 and their feckless and futile foibles:

there were seven spanish angles/

at the altar of the sun/

they were prayin for the lovers/

in the valley of the gun/

when the battle stopped and the smoke cleared/

there was thunder from the throne/

and seven spanish angles/

took another angel home...


thank ya, willie!

God blees yer soul, mr. Charles


you're welcome, ZHealots!




Tue, 06/05/2012 - 08:28 | 2495313 fraud-fed
fraud-fed's picture

I'm sure they will find some-one with ultirior motives to fix this mess!

La introducción del Sr. Goldman ...

Tue, 06/05/2012 - 08:29 | 2495316 El Oregonian
El Oregonian's picture

The new Conquistadors have come a knocking...

Tue, 06/05/2012 - 08:30 | 2495323 grunk
grunk's picture

Generalissimo Francisco Franco is still dead.

Tue, 06/05/2012 - 08:32 | 2495329 DavosSherman
DavosSherman's picture

Greece, Spaine, dominos.

Tue, 06/05/2012 - 08:33 | 2495336 fiddler_on_the_roof
fiddler_on_the_roof's picture

Come on ZH, how many "EURO will collapse now" articles and nothing
Happens. Since Euro's biirth 10 yrs ago, it is still up like 25% against the dollar.

This Euro blah blah blah, is all bullshit here.

Tue, 06/05/2012 - 12:44 | 2496277 Cosimo de Medici
Cosimo de Medici's picture

The euro is up 6% since it was first introduced, but your point is well taken.

Let's see where we are in six months.

Tue, 06/05/2012 - 15:05 | 2496937 fiddler_on_the_roof
fiddler_on_the_roof's picture

OK, fine EURO closed on Jan 4th 1999 ie 13 years ago and closed at 1EU=$1.17. Now 1 EU= $1.27 ie 8% rise. 

we'll see in 6 years(maybe even months), EURO will be much higher.

Tue, 06/05/2012 - 08:36 | 2495341 Negro Primero
Negro Primero's picture
"Spanish Peasants Live in Practical and Cool Subterranean Houses"

(Might be useful in the soon to come civil war.)

Tue, 06/05/2012 - 08:36 | 2495342 adr
adr's picture

Or how about we just cancel all global debt, hit the reset, and then put the interest rate on borrowed money at 90% forcing everone and every country to live within thier means. Also remove all leverage ability from investments.


Prices would plumet on just about everything and wage parity would result as only the productive will be succesfull.

World leaders are trying to figure out the impossible. How to pay for welfare without ever having enough money to pay for it.

Tue, 06/05/2012 - 08:37 | 2495348 nomorebuyins
nomorebuyins's picture

German for Dummies. Required reading in Spain.

Tue, 06/05/2012 - 08:41 | 2495359 sabra1
sabra1's picture

Brazil seizes Cruzeiro do Sul bank

Tue, 06/05/2012 - 10:50 | 2495875 JR
JR's picture

Grant says Spain is going to come under the heel of the jackboot.

It’s the bankers who wear the jackboot; who’ve always worn the jackboot; it’s the bankers' economic engines that are strip-mining Europeans’ financial future, especially that of the German people. Will these peoples’ necks ever be free of the boot?

You point to the source, Alejandrito:

WASHINGTON (MarketWatch) — “Germany will ultimately take whatever steps necessary to keep the euro zone intact, said Deutsche Bank’s former Chief Executive Officer Josef Ackermann on Monday.

“’If it comes to worst, before the euro zone collapses, everything will be done to bail the euro zone out,' Ackermann said in a late afternoon speech at the Atlantic Council. Read more on Deutsche Bank's CEO handover.

“Later he said that he had ‘no doubt’ that the German people would support a rescue operation for the euro zone.”

And I have no doubt that he has no doubt.

It wasn’t for nothing the NY Times two years ago designated this Jewish banker “the most powerful banker in Europe and, depending on whom you ask, possibly the most dangerous one, too.” 

Tue, 06/05/2012 - 14:21 | 2496672 Don Keot
Don Keot's picture

Currency exchanege window now open. " This is not a bailout, the fed makes money on this at no expense to the tax payer." Where do these dollars come from and once in circulation, don't they stay in circulation?

Tue, 06/05/2012 - 08:46 | 2495376 CatoRenasci
CatoRenasci's picture

The revenge of the children of the Condor Legion!

Tue, 06/05/2012 - 08:52 | 2495389 Conman
Conman's picture

I'm loving the pic on the front of Cop standing in front of an ATM machine with woman screaming in the background.

Tue, 06/05/2012 - 08:53 | 2495407 JOYFUL
JOYFUL's picture

Once yu review this piece, and put it together with the revelatory article of yesterday's ZH  - Germany as uber Warmonger and Armament Supplier to the small but bellicose bully in the ME....the pieces all fall into place...

Germany won't be lording it over Spain a'tall...

sionists seeking payback for the expulsion of the original Lurianic cabbalists from Hispania will be lording it over Italy, an Greece, and every other unruly outpost of their farflung empire of usury...

till those folks all just get sick n tired of it, and throw the parasites out.


Tue, 06/05/2012 - 09:00 | 2495443 fiddy pence haf...
fiddy pence haff pound's picture

Varoufakis was calling for ECB bonds more than 6 months ago.

Let's face it. Nobody's going to willingly stop this debt game.

They don't even want to ditch Greece. They'd rather fund Greece's

banks under the table, so that they have 'liquidity'

(until all of it is spent, that is).

Thre's nothing but emergency money for the government,

but they're corrupt anyway. So, it's putting- out- fires time.

Drug shortages, particularly for cancer, have apparently been solved

with some 'found' money, from ....? Schools can survive without books.

Barosso bucks and democracy!


ECB bonds might give us a year of relative stability.

down-the-road-can-kicking, hijos de puta!

Tue, 06/05/2012 - 14:23 | 2496694 Don Keot
Don Keot's picture

It will continue until it can't

Tue, 06/05/2012 - 09:03 | 2495457 hnaparst
hnaparst's picture

Jesus Christ.  Stop with the butchering of Don Quixote already, it is killing me.  At least read the scene in the book.  It was not Sancho Panza that attacked the windmills.  It was Don Quixote.

Look, I'll make this really easy for you.  Don Quixote was the crazy one, Sancho Panza was his sane help-mate.  

There are two really famous scenes you probably want to allude to:

1.  Don Quixote sees some windmills, and he imagines they are giants.  He attacks them.  Sancho Panza tries to stop him.  Don Quixote gets his lance stuck in the windmill, and gets lifted off his horse, toppling to the ground.

2.  Don Quijote attacks a flock of sheep, convinced it is an enemy army.   He kills several sheep.  Sancho Panza again tries in vain to stop him.  The shepherd is not pleased.

Hopefully that will keep you out of trouble. 

Tue, 06/05/2012 - 09:07 | 2495468 Apostate2
Apostate2's picture

 I will do my part to underwrite this fiasco. I will buy the death of a matador in the Belles Artes in Seville. Will they sell? 

Tue, 06/05/2012 - 09:11 | 2495486 q99x2
q99x2's picture

Calling all revolutionaries.

Tue, 06/05/2012 - 09:13 | 2495488 eclectic syncretist
eclectic syncretist's picture

A simple analogy.  I owe you a hundred dollars, and interest payment of ten dollars comes due but I don't have ten dollars, so you lend me another ten dollars which I immediately return to you as payment.  Now I owe you $110 dollars which I have no way to repay, but I have time before the next interest payment is due. 

Pop quiz: What was the problem, and what problem did we solve?

Tue, 06/05/2012 - 09:16 | 2495507 chinaboy
chinaboy's picture

First, great blog.

Second, while G7 officials are conference calling and nothing is going to be done about it. The market is totally numb. The so called market lossed its god given gene: to measure and react to risks.

Third, when someone lossed its hearing, vision, genes, then we can call him brain dead. And him is the so called market.



Tue, 06/05/2012 - 09:15 | 2495508 olle
olle's picture

It seems like the Eurocrats moostly agree on a direct bailout of local banks if a good thing. Every time they have agreed on a solution or a fix it got us sunked more deeply into the quicksand.

So it´s time to watch out and call för "Red Alert", if they belive it´s a fix, it will be just another step closer to the meltdown.

"Free drink´s in the aft lounge".....

Tue, 06/05/2012 - 09:19 | 2495528 DavidJ
DavidJ's picture

Lower living standards coming.

Tue, 06/05/2012 - 09:22 | 2495543 mendolover
mendolover's picture

Which Goldman Sachs operative do we think will be the next ruler of Spain?

Tue, 06/05/2012 - 09:36 | 2495601 BlackholeDivestment
BlackholeDivestment's picture

...Spain is fallen fallen.

Tue, 06/05/2012 - 10:04 | 2495727 Snakeeyes
Tue, 06/05/2012 - 10:35 | 2495830 chdwlch1
chdwlch1's picture

Does anyone know the answer to this?  When the US supplies dollar swaps to Europe, are the dollars supplied newly created dollars or existing dollars?  If they are newly created dollars then the US taxpayer pays interest on them.  Then they "loan" those same dollars to Europe and earn more interest?  Is that how it works?

Tue, 06/05/2012 - 11:33 | 2496033 zippy_uk
zippy_uk's picture

Dear Angela - I know that you are well informed about such matters as the Spanish financial system. You are right to be concerned about throwing good German money after bad in case the Spanish banks turn out to be a disaster area which is totally unsalvageable.

I regret to inform you that contrary to official reports, the Spanish banks turn out to be a disaster area and are totally unsalvageable.


Yours, Head of EU banking audit, EURO divison

Tue, 06/05/2012 - 12:32 | 2496240 silverserfer
silverserfer's picture

nothing gets fixed untill all this debt is wiped clean and the world starts over. Default, reset, new currency. The game starts over. The only question is, what do we call the new money?

Tue, 06/05/2012 - 14:31 | 2496747 Don Keot
Don Keot's picture

Computer bits?

Tue, 06/05/2012 - 13:10 | 2496359 Paracelsus
Paracelsus's picture

merde,didn't I read somewheres that Italy and France had big  exposure to Spain?

If I were Spain I would secretly bury their gold reserves out in the bush.When the ECB stops taking crap collateral they will want some PM's,rest assured....

Tue, 06/05/2012 - 17:17 | 2497435 TWSceptic
TWSceptic's picture

Spain will drive the eurocrats insane, but for their mistakes someone else will get the blame. They'll have taxpayers feel the pain, but eventually it will all be in vain.

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